At Londinium, Risk Management is paramount: it drives all management and investment decisions with the aim of identifying, analysing, handling and monitoring the risk involved in our activity.
The three pillars of Risk Management are:
As a MiFID regulated firm, Londinium coherently and routinely considers major risk scenarios, with qualitative and quantitative aspects, that would affect the continuity and viability of the business as well as what procedures are in place to mitigate such risks. Organizational, financial, reputational, and general business risks are regularly assessed within the Internal Capital Adequacy Assessment Process (ICAAP). Londinium’s management uses this process to:
- Preserve the firm’s capital-base and viability;
- Blend a risk-awareness culture into the corporate culture;
- Meet regulatory and supervisory requirements at all times
Londinium adheres to the IFIA Corporate Governance Code.
The Investment Decision Process
Londinium’s risk-management approach is an integrated and continuous process that aims to maximise risk/reward while focusing on capital-preservation.
The balancing of investment returns with risk through tactical risk-management and the unending search for uncorrelated strategies within the alternative universe such as hedge funds (AIFs), CTAs, and capital guaranteed structured products.
Specific risk is diversified away with careful monitoring of unintended consolidation of single issues.
- Organisational Structure
In terms of organisational structure, Londinium has three levels of risk-management/risk-controlling responsibilities:
- Overall guidance and supervision is performed by the Investment Committee, which is responsible for setting out the general risk-management policy and strategy (vision, appetite and control standards)
- Ex ante and first layer of ex post risk controls are the responsibility of the firm’s Risk Manager
- Second layer of ex post risk controls are independently outsourced to Credit Suisse for the long only investment funds